The demand for energy is growing in the emerging countries. These
countries are also heavily dependent on oil.

Energy demand in emerging countries, like India and China is growing at
a substantial rate owing to industrialization, growing population, and
urbanization. But these countries do not have enough infrastructures for
distribution of gas and generating renewable energy to meet the growing
demands. Therefore emerging countries are expected to remain heavily
dependent on oil to meet the demands.

Europe is moving towards gas and renewable energy to meet the energy
needs, which is constraining the oil demand in the region. The
regulation put in place by European Union, and national governments are
expected to reduce the refined oil demand in the region further. For
example, the new cap will be put in action after 2020 on the sulfur
content of marine fuel, which is expected to reduce the demand for oil
in the marine industry. With low oil demands, many refineries in the
region are unable to find buyers.

Nigeria has a nameplate capacity of 445,000 bpd, largest in West Africa
and fourth largest in Africa. But the refining facilities are very old;
suffer from lack of maintenance and inconsistent feedstock. As a result,
country's 80% of the downstream product requirement is fulfilled by the
imports. The government of Nigeria plans to process all the domestic
refined product consumption locally by 2019. In order to improve the
downstream industry production, and reduce the dependence on imports,
Nigeria's Department of Petroleum Resources (DPR) and state-owned
Nigerian National Petroleum Corporation (NNPC) have opened their door to
private international and local investors.